Using the connecting theme of scarcity, students will determine the choices that need to be made with one’s income. Because resources are limited, people must make choices. Scarcity also drives production, distribution, and consumption decisions. Students will consider potential outcomes from these decisions, especially as they relate to personal money management. These personal choices help students make personal connections to the theme of gain from trade, as they must decide how to trade their labor (mental or physical) for an income, and the ramifications of this decision.
Gain from Trade: The student will understand that parties trade voluntarily when they expect to gain. (Economics, Personal Finance)
Production, Distribution, Consumption: The student will understand that the production, distribution, and consumption of goods/services produced by the society are affected by the location, customs, beliefs, and laws of the society.
Scarcity: The student will understand that scarcity of all resources forces parties to make choices and that these choices always incur a cost.